3 ms·

I like how the author says: >Politicians routinely claim that Social Security is going bankrupt and that its shortfalls drive the national deficit - neither is

I like how the author says: >Politicians routinely claim that Social Security is going bankrupt and that its shortfalls drive the national deficit - neither is true. Followed by: >Yes, there is a funding problem: absent other changes, the combined retirement and disability trust funds will be empty in 2035. Which,to me, seems pretty contradictory. The author continues to say there is no problem at all, as long as a specific Act passes unmodified. So - everything is okay, but only as long as X Y and Z happen... Seems like this is just a really roundabout way of being able to cram "millenials" into another story. They're killing the SS industry with their pessimism!

javagram 7y ago
The article does continue to say “At that point, current revenue would be sufficient to pay about 80 percent of schedule benefits.” SS isn’t going away. At worst the benefits will be slashed to some fraction of what the law requires. Considering the rising cost of living we should all save for retirement using a pension plan or 401k anyway though. Agreed that the framing of blaming millennials makes no sense here.
- DuskStar 7y ago
  The author also says that planning to receive 50% of your stated social security benefits is crazy, and then mentions that absent any legal changes there'll be a 20% cut in 15 years. Am I supposed to believe that that cut won't go up with time?
  - javagram 7y ago
    The Social Security Trustees report state that they can use revenue under current law to pay for 75% of scheduled benefits through 2093. Unless there is a dramatic economic collapse due to climate change or global thermonuclear war or whatever, you should be able to plan on receiving more than 50% of your benefits. Of course in case of collapse like that my 401k probably doesn’t keep its value either... https://www.ssa.gov/oact/TRSUM/ https://www.ssa.gov/oact/TRSUM/
    - DuskStar 7y ago
      It would be wonderful if that 75% number pans out! But at the same time, I'm still going to do my retirement planning assuming that Social Security dies before I'm able to withdraw a single dollar. Pessimistic assumptions are a good idea in situations like this.
- tunesmith 7y ago
  Last time I checked, the projected shortfall (if no one does anything to help) would be 77%. I don't know where they got the 50% number.
crdoconnor 7y ago
There's a difference between deliberate underfunding and an inability to pay. We could theoretically "fund" the military in the same way that social security is set up and then claim it's going bankrupt. It still wouldn't make it unaffordable. The point is that millennials are being conditioned to expect a vastly watered down social security in order to manufacture consent for watering it down (or handing control over to wall st)

javagram 7y ago

The article does continue to say “At that point, current revenue would be sufficient to pay about 80 percent of schedule benefits.” SS isn’t going away. At worst the benefits will be slashed to some fraction of what the law requires. Considering the rising cost of living we should all save for retirement using a pension plan or 401k anyway though. Agreed that the framing of blaming millennials makes no sense here.

DuskStar 7y ago
The author also says that planning to receive 50% of your stated social security benefits is crazy, and then mentions that absent any legal changes there'll be a 20% cut in 15 years. Am I supposed to believe that that cut won't go up with time?
- javagram 7y ago
  The Social Security Trustees report state that they can use revenue under current law to pay for 75% of scheduled benefits through 2093. Unless there is a dramatic economic collapse due to climate change or global thermonuclear war or whatever, you should be able to plan on receiving more than 50% of your benefits. Of course in case of collapse like that my 401k probably doesn’t keep its value either... https://www.ssa.gov/oact/TRSUM/ https://www.ssa.gov/oact/TRSUM/
  - DuskStar 7y ago
    It would be wonderful if that 75% number pans out! But at the same time, I'm still going to do my retirement planning assuming that Social Security dies before I'm able to withdraw a single dollar. Pessimistic assumptions are a good idea in situations like this.
tunesmith 7y ago
Last time I checked, the projected shortfall (if no one does anything to help) would be 77%. I don't know where they got the 50% number.

crdoconnor 7y ago

There's a difference between deliberate underfunding and an inability to pay. We could theoretically "fund" the military in the same way that social security is set up and then claim it's going bankrupt. It still wouldn't make it unaffordable. The point is that millennials are being conditioned to expect a vastly watered down social security in order to manufacture consent for watering it down (or handing control over to wall st)